Due to the rise of bitcoin, another Argentine company entered the category of unicorn

08/09/2021 4:51 PM

• Clarín.com

• Economy

Updated 08/09/2021 4:51 PM

Another Argentine tech company fell into the unicorn category.

It is

Bitfarms,

a

cryptocurrency

mining company

founded by two Argentines

, operating in Canada and listed on both Wall Street and the Toronto Stock Exchange.

Fueled by the recovery in the price of bitcoin, it

surpassed the $ 1 billion valuation on Monday.

The company, which was

created in 2017 by Emiliano Grodzki and Nicolás Bonta,

had achieved a 25% increase this weekend in the pre market and with the opening of the markets its role rose 18%, which helped it to enter the category that until today was shared by eight other companies, such as Mural, Vercel, Aleph, Mercado Libre, Globant, Despegar, OLX and Auth0.

Among the reasons that promoted this rise are

the improvements in the price of bitcoin, which surpassed US $ 45,000 on Monday and reached its highest value since May.

But also the increasing restrictions on cryptocurrency mining faced by the Chinese government, which led the activity to companies from other latitudes.

Bittfarm, which has been listed on Nasdaq since June this year, will present its second-quarter results next week and the market would be anticipating that data.

The company mines bitcoins: that is, it operates computers -miners- that solve mathematical operations and authorize transactions in cryptocurrencies and in exchange for that work they receive bitcoins as payment.

It has

five facilities in Quebec, Canada, with an electrical power of 69 megawatts,

and in its pipeline is the construction of another five plants that would add an additional 100 MG among them.

His plans also include more investments in other countries.

A couple of months ago, the firm had announced its plans to

install a crypto mining farm in the country

.

In October it had signed a memorandum of understanding to develop a 60 MW bitcoin mining operation in Argentina, noting a "favorable climate throughout the year" for the facility, which the firm says will be a "significant contribution" to its production target. by the end of 2022.

In addition, they want to "provide geographic diversification of production to reduce risk."

They do not clarify, however, in which part of the country.

AQ

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